Closeup of credit card and smartphone in woman's hands
Alexandra Sabalier
April 03, 2024
2 min

FBAR Filing Requirements: What You Need to Know

In an increasingly globalized world, many individuals and entities find themselves managing financial accounts across international borders. However, with the expansion of financial regulations, particularly for U.S. persons, it's crucial to understand and comply with reporting requirements, such as the Foreign Bank Account Report (FBAR). In this article, we'll delve into the intricacies of FBAR filing requirements and exemptions to ensure compliance and avoid potential penalties.

FBAR Filing Requirements Explained:

The Foreign Bank Account Report (FBAR) is a mandatory filing required by the U.S. Department of the Treasury for individuals or entities considered U.S. persons. This includes citizens, residents, corporations, partnerships, limited liability companies (LLCs), trusts, and estates. According to the regulations, if a U.S. person has a financial interest in or signature authority over at least one financial account located outside the United States, they must file an FBAR. Importantly, this requirement applies if the aggregate value of those foreign financial accounts exceeds $10,000 at any time during the calendar year reported.

Understanding FBAR Aggregate Value:

The term "aggregate value" refers to the combined total value of all foreign financial accounts held by an individual or entity. This encompasses the balances of all such accounts, whether held separately or jointly with others.

For example, if an individual has three foreign bank accounts with balances of $5,000, $3,000, and $4,000 respectively, the aggregate value of their foreign financial accounts would be $12,000 ($5,000 + $3,000 + $4,000).

Exemptions from FBAR Reporting:

While many individuals and entities are subject to FBAR filing requirements, certain types of accounts are exempt from reporting. These include correspondent/nostro accounts, accounts owned by governmental entities or international financial institutions, accounts held in U.S. military banking facilities, individual retirement accounts (IRAs), retirement plans, and certain trust accounts. Additionally, individuals may not need to file separate FBARs if all their foreign financial accounts are reported on a consolidated FBAR or if they jointly own the accounts with their spouse and meet specific requirements.

Importantly, income tax filing status, such as married-filing-jointly or married-filing-separately, does not impact eligibility for these exemptions from FBAR filing requirements.


Navigating the complexities of FBAR filing requirements can be challenging, but understanding the rules and exemptions is essential for compliance and avoiding potential penalties. By grasping the concept of aggregate value and recognizing exemptions for certain types of accounts, individuals and entities can ensure they fulfill their reporting obligations accurately and effectively. As always, consulting with a knowledgeable tax professional can provide further guidance and peace of mind in navigating these regulatory requirements.

Do you need to discuss your FBAR filing requirements further? Would you like help filing your FBAR correctly? Schedule an easy online consultation at Sabalier Law today to explore how we can assist you in meeting your compliance needs and ensuring peace of mind.

Why hire me?
  • 100% Online and Safe
  • Personal Lawyer
  • Affordable
  • At Sabalier Law, you count with expert legal representation and guidance throughout your entire process as well as support afterwards
  • 100% online services using the latest in secure technology to effectively and successfully represent you and your case no matter where you reside in the world
  • Confidential communication, document review, and legal advise fully protected by the Attorney- Client privilege
  • Unlimited legal consultations via telephone, video-call, and e-mail
  • Fully Billingual communication, and legal services in English and Spanish
  • Expert legal preparation and expedited submission of your documents
  • Constant updates and communication with you on the status of your case, applications, and documents' reviews
  • Timely notification of changes in the laws and procedures that are relevant for your case
  • Attentive personal support throughout our entire Attorney- Client relationship
  • Guaranteed maximum secure electronic payment platforms to ensure smooth and easy payment methods anywhere you are located in the world
© Copyright Sabalier Law 2024
Made with special  by
Javier Ortiz Saorin